As Donald Trump prepares to be sworn in as the 47th president of the United States on Jan. 20, 2025, his administration has signaled an uncompromising approach to immigration, appointing former Immigration and Customs Enforcement (ICE) head Tom Homan as his “border czar.” Trump’s election victory and the appointment of Homan, who pledged earlier this year that he would lead the “biggest deportation force this country had ever seen” under Trump’s return to leadership, ignited a rally in private prison stocks The GEO Group, Inc. (GEO) and CoreCivic, Inc. (CXW).
These companies, which manage detention and rehabilitation centers, are positioned to capitalize on a potential surge in contracts with federal agencies focused on immigration enforcement. Isaac Boltansky, an analyst at BTIG, said in a Nov. 6 note to clients, that a second Trump administration would likely expand contracts with the U.S. Marshals Service and the Federal Bureau of Prisons.
